DP Economics
Question SPM.1.HL.TZ0.2a
| Date | May specimen first teaching 2021 | Marks available | [Maximum mark: 10] | Reference code | SPM.1.HL.TZ0.2a |
| Level | HL | Paper | 1 | Time zone | TZ0 |
| Command term | Explain | Question number | a | Adapted from | N/A |
a.
[Maximum mark: 10]
SPM.1.HL.TZ0.2a
(a)
Explain two tools open to a central bank to conduct expansionary monetary policy.
[10]
Markscheme
Answers may include:
- Definition: expansionary monetary policy.
- Explanation: of any two of the following instruments—open market operations, minimum reserve requirement, base rate changes and quantitative easing.
- Diagram: money market diagram to show interest rates falling or AD/AS diagram.
